1998 endownment, £20,000 short

paulie

Hiya guys, I'm new to all this, but really trying to figure out the best thing to do. As the title suggest we'll be likely to be 20,000 short. We've still got 18yrs left to run, so should we just cash it in as its so new we wont have lost that much. We'd can mange a repayment mortgage (lucky us bought in just beofore the rising market) but we can only just afford the repayment and the £5/6 grand we'd get back from selling the policy would be sooo useful at the mo.
But as its sucha young endownment can we sell it??

any help from you clever clogs would be marvellous

paulie

Why does it say 'regards mark' at the end of my post???

Anyway, I'm Paula!! lol thanks again for any advise

littlereddevil

Mine is forecast as £25000 short and I have been trying since last June to get compensation b ut no luck so far.
I have also thought about cashing it in but cannot really afford a straight repayment mortgage

dunstonh

hi Mark (you can change your signature in the usercp).

Any straight line projection for a plan issued in 1998 would show a shortfall. The charges are front loaded so its in deficit from day one.

You may find selling a 7 year old policy a bit harder than a more mature policy and depending on the insurer, it may not even be wanted.

EdInvestor

What company is it with Paulie/Mark?

Post the follwing and we can take a look:

Guaranteed sum assured
Total bonuses so far
Monthly premium
Maturity date
Surrender value

Froggitt

If you get 5-6k from selling it, look at paying 5-6k off your mortgage.....will reduce your repayments significantly over the rest of the term.

littlereddevil

5-6k reduces your mortgage payments by very little

paulie

Guaranteed sum assured - Does this mean the sum paid out if either of us die? If so, then it is £72550 or value on death - £48450
Total bonuses so far - No idea
Monthly premium - £81.14
Maturity date - dec 2022
Surrender value - £5253.86

Does this help? I cant beleive so many of us have no idea about our money.

Where would be the best place to sell it, how do I find out about that?

Thanks for all your responses

Moncs_2

I am in the same boat, I took out an endowment in 1998, and its forecast to be a shortfall of around £17k. I have been told that it could rise but not to expect miracles.

I got 3k compenstation a few years back, and I am hoping to change my mortgage to a repayment one very soon, I also hope to continue with teh endowment, so when it does mature the lump sum will be all mine.

Interesting to see that your only paying £81p/m for a £72k endowment, I pay £110p/m and mines was meant to pay out £60k. Who is it your with?
I'm with Royal & Sun Alliance.

dunstonh

Interesting to see that your only paying £81p/m for a £72k endowment, I pay £110p/m and mines was meant to pay out £60k. Who is it your with?

Any of the following reasons:

1 - He could be 10-15 years older and be more expensive on life cover.
2 - Critical illness could be included.
3 - Target growth rate could be low (like 4% compared with a high target growth rate like 8% or higher)
4 - Term of the policy could be less.
5 - LAPR may apply on one of the plans but not another.
6 - could be joint life compared with single
7 - could have higher charges

Personally, i would strongly recommend you investigate the R&SA policy in a bit more detail before deciding whether you want to keep it or not. The future potential of their with profits fund is much lower than would you would expect when looking at a Pru or NU policy.

EdInvestor

paulie wrote:

Guaranteed sum assured - Does this mean the sum paid out if either of us die? If so, then it is £72550 or value on death - £48450
Total bonuses so far - No idea

Sorry, can't help without knowing the guaranteed sum assured and annual bonuses.


Moncs:

I agree with Dunstonh's query on the idea of holding onto your RSA 1998 endowment. Post some figures on it if you want a view. Older RSA endowments can be worth holding to maturity but this one looks a little juvenile